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City of Ramsey Local Water Supply Plan <br />Table 27. Rate structures for each customer category (Select all that apply and add additional <br />rows as needed) <br />Customer <br />Category <br />Conservation Billing Strategies <br />in Use * <br />Conservation Neutral <br />Billing Strategies in Use ** <br />Non -Conserving Billing <br />Strategies in Use *** <br />Residential <br />❑ Monthly billing <br />❑X Increasing block rates <br />(volume tiered rates) <br />❑ Seasonal rates <br />❑ Time of use rates <br />❑X Water bills reported in <br />gallons <br />❑ Individualized goal rates <br />❑X Excess use rates <br />❑ Drought surcharge <br />❑ Use water bill to provide <br />comparisons <br />❑ Service charge not based on <br />water volume <br />❑ Other (describe) <br />❑ Uniform <br />❑ Odd/even day watering <br />❑ Service charge based on water <br />volume <br />❑ Declining block <br />❑ Flat <br />❑ Other (describe) <br />Commercial/ <br />Industrial/ <br />Institutional <br />❑X Monthly billing <br />❑X Increasing block rates <br />(volume tiered rates) <br />❑ Seasonal rates <br />❑ Time of use rates <br />❑X Water bills reported in <br />gallons <br />❑ Individualized goal rates <br />❑ Excess use rates <br />❑ Drought surcharge <br />❑ Use water bill to provide <br />comparisons <br />❑ Service charge not based on <br />water volume <br />❑ Other (describe) <br />❑ Uniform <br />❑ Service charge based on water <br />volume <br />❑ Declining block <br />❑ Flat <br />❑ Other (describe) <br />❑ Other <br />* Rate Structures components that may promote water conservation: <br />• Monthly billing: is encouraged to help people see their water usage so they can consider changing <br />behavior. <br />• Increasing block rates (also known as a tiered residential rate structure): Typically, these have at least <br />three tiers: should have at least three tiers. <br />o The first tier is for the winter average water use. <br />o The second tier is the year-round average use, which is lower than typical summer use. This rate <br />should be set to cover the full cost of service. <br />o The third tier should be above the average annual use and should be priced high enough to <br />encourage conservation, as should any higher tiers. For this to be effective, the difference in <br />block rates should be significant. <br />• Seasonal rate: higher rates in summer to reduce peak demands <br />• Time of Use rates: lower rates for off peak water use <br />• Bill water use in gallons: this allows customers to compare their use to average rates <br />44 April 7, 2017 <br />